Chapter I General ProvisionsArticle 1 For the purpose of regulating the foreign exchange administration of qualified foreign institutional investors (hereinafter referred to as "QFIIs") in Chinese domestic securities market, these provisions have been formulated in accordance with the Administrative Regulations of the People's Republic of China on Foreign Exchange and the Administrative Measures for Domestic Securities Investments by Qualified Foreign Institutional Investors (Order of the China Securities Regulatory Commission, the People's Bank of China and the State Administration of Foreign Exchange [2006] No.36).Article 2 QFIIs shall appoint their domestic custodians (hereinafter referred to as "custodians") to represent them in going through the relevant formalities specified herein.Article 3 QFIIs and their custodians shall abide by Chinese provisions applicable to foreign exchange administration.Article 4 The State Administration of Foreign Exchange and its branches and foreign exchange departments (hereinafter referred to as the "foreign exchange authorities") shall supervise, administer and examine the investment quotas, capital accounts, receipts, payments, and capital remittances, etc., for domestic securities investments made by QFIIs.

Chapter II Administration of Investment QuotasArticle 5 QFII domestic securities investment quotas shall be administered by the state and the investment quotas of individual QFIIs shall be approved by the State Administration of Foreign Exchange. Medium and long-term investments shall be encouraged.Article 6 When a QFII applies for an investment quota and to open a foreign exchange account and an RMB special account, it shall provide the following materials to the State Administration of Foreign Exchange:
1. A written application submitted by the custodian and the QFII, the particulars of which shall include: basic details on the QFII, an explanation of the sources of capital, an investment plan, the QFII's commitment to refrain from withdrawing its investment within the lock-up period, etc., along with the State Administration of Foreign Exchange QFII Registration Form (see Schedule 1 for the template);
2. A copy of its Qualified Foreign Institutional Investor Securities Investment Operating License issued by the China Securities Regulatory Commission (hereinafter referred to as the CSRC);
3. A notarized power of attorney issued by the authorized QFII to its custodian; and
4. Any other materials required by the State Administration of Foreign Exchange.
When a QFII applies to increase its investment quota, it shall, in addition to the materials described in items 1 and 4, provide its Qualified Foreign Institutional Investor Foreign Exchange Registration Certificate (hereinafter referred to as the "Foreign Exchange Registration Certificate") and a summary of investments it has already made in the domestic market under any existing investment quota it holds, the details of which shall include asset allocation and any change therein, profit and loss information, the fulfillment of compliance requirements, and the average turnover rate in share transactions, etc.Article 7 The investment quota applied for by an individual QFII on any one occasion shall be for no less than the equivalent of USD 50 million and the cumulative value of all investment quotas held by any one QFII shall not exceed the equivalent of USD 1 billion. ......

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